Power Distribution Enhancement Investment Program - Tranche 2 (ADB-38456-033)

  • Pakistan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 14, 2010
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 172.30 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 2, 2020

Disclosed by Bank Mar 28, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.


The immediate priority for investment in the distribution systems is to address the capacity shortfalls that currently result in regular system outages and supply interruptions to customers.


Electricity customers in Pakistan continue to suffer from prolonged outages. High growth in electricity demand is putting the existing infrastructure under severe stress. Power generation gap remains to be the core problem. Power transmission and distribution system bottlenecks continue to be part of the problem. Financial sustainability is another challenge and is a key part of ADB's policy dialogue and support to the Government. In 2009, the tariffs have been gradually increased, and the Government stopped all subsidies to the power sector. Cost recovery tariffs will enable power distribution companies to strengthen their financial position and attract additional investment for system expansion and rehabilitation.


No consulting services requirement under this Loan.


Procurement of works and goods will be undertaken in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). International competitive bidding (ICB) will be used for supply contracts estimated to cost more than $500,000 and for works that cost more than $5 million. National competitive bidding (NCB) may be used for goods and works above $100,000 and below their ICB thresholds. Shopping will be used for goods and works equal to or below $100,000.

Advance Contracting and Retroactive Financing. Advance contracting and retroactive financing of expenditures for the first and subsequent tranches (up to 20% of the proceeds from individual loans under the MFF) has been approved by ADB, provided that those expenditures are incurred in accordance with agreed procedures and during the 12 months before the signing of the corresponding individual Loan Agreement and Loan effectiveness under the MFF. Because of the urgent nature of the Project, retroactive financing will cover eligible expenditures including civil works, and goods. Such financing will be subject to compliance with involuntary resettlement requirements stated in the land acquisition and resettlement plans. The Government and the DISCOs have been informed that approval advanced contracting and retroactive financing does not commit ADB to finance any of the proposed subprojects. DISCOs have also been advised that they must comply with all ADB procurement procedures in order to qualify for retroactive financing.

Advance contracting and retroactive financing of expenditures for the first and subsequent tranches (up to 20% of the proceeds from individual loans under the MFF) has been approved by ADB, provided that those expenditures are incurred in accordance with agreed procedures and during the 12 months before the signing of the corresponding individual Loan Agreement and loan effectiveness under the MFF.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Loan 2727-PAK: MFF Power Distribution Enhancement (Tranche 2)
Ordinary capital resources US$ 172.30 million

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.


The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main


Responsible ADB Officer Khattak, Ehtesham Zafar
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission

Executing Agencies
Faisalabad Electric Supply Company Limited
West Canal Road, Abdullah Pur, Faisalabad, Pakistan
Gujranwala Electric Power Company
565-A, Model Town, GT Road Gujranwala, Pakistan

Hyderabad Electric Supply Company
Wapda Office complex, Hussainabad Hyderabad, Pakistan
Islamabad Electric Supply Company
Islamabad, Pakistan

Lahore Electric Supply Company
22-A, Queens Road Lahore, Pakistan

Multan Electric Power Company
MEPCO Complex, Khanewal Road Multan, Pakistan

Pakistan Electric Power Company (Pvt.) Limited
Managing Direct PEPCO
403-WAPDA House
Lahore-54000, Pakistan

Peshawar electric Supply Company
WAPDA House, Sakhi Chesma, Shami Road Peshawar, Pakistan

Quetta Electric Supply Company
Zarghoon Road Quetta, Pakistan

How it works

How it works